Terms of Reference
Assessment of the social impacts of drought
Background
Government assistance for drought events is guided by the current National Drought Policy (NDP). Under the NDP, drought assistance or support is intended to be a short term measure to help farmers prepare for, manage and recover from drought. The objectives of the NDP are to:
- encourage primary producers and other sections of rural Australia to adopt self-reliant approaches for managing a changing climate
- maintain and protect Australia’s agricultural and environmental resource base during periods of extreme climate stress; and
- ensure early recovery of agricultural and rural industries, consistent with long-term sustainable levels.
Although self-reliance is a key objective, the NDP also recognises that there are rare and severe events that are beyond the ability of even the most prudent farmer to manage. The Commonwealth Government provides support to farmers and rural communities under the Exceptional Circumstances (EC) arrangements and other drought programs. The state and territory governments also participate in the NDP and provide support measures of their own.
To be classified as an EC event, the event must be rare, that is, it must not have occurred more than once on average in every 20 to 25 years. Australia is experiencing a drought that has been unprecedented in its geographic extent, length and severity. Some areas have been drought declared for 13 of the last 16 years, leading to some recipients receiving EC assistance since 2002.
Climate change will bring with it significant challenges for Australian agriculture. Climate change is expected to increase the frequency, severity and length of drought periods in future. It will also have impacts on rural communities that are dependent on primary industries.
Australian primary industries ministers have agreed that current approaches to drought and EC are no longer the most appropriate in the context of a changing climate. They agreed that drought policy must be improved to create an environment of self-reliance and preparedness, and encourage the adoption of appropriate climate change management practices.
To improve drought policy, ministers agreed to consider:
- relevant social dimensions and policy responses to drought and Exceptional Circumstances
- the provision of accessible social welfare support, including eligibility criteria
- the effectiveness of business support payments
- the effectiveness of financial risk management strategies, including Farm Management Deposits
- the effectiveness of preparedness policies; and
cost-benefit analysis of state and federal drought assistance.
This assessment, by an expert panel, will analyse the social dimensions of the impacts of drought and the range of current government and non-government social support services available to farm families and rural communities during periods of stress and change. It will also take into consideration the cultural and social issues that may impact on the capacity of farm families and rural communities to improve self-reliance and preparedness and better manage change.
This assessment, as part of a review of drought policy, will support the Productivity Commission’s inquiry into the appropriateness of current government drought business support and income support measures. The Commission’s inquiry will also be supported by an assessment by the Bureau of Meteorology and Commonwealth Scientific and Industrial Research Organisation of what a changing climate means for drought in Australia and the appropriateness of using the concept of exceptional climatic circumstances to trigger the availability of assistance measures.
Scope of the assessment
This assessment will report on:
- The social dimensions of the impacts of drought on farm families and rural communities.
- The objectives, extent and range of Commonwealth, state and territory governments’ and non-government social support services, including counselling and advisory services, available to farm families and rural communities during periods of stress and change such as drought.
- Gaps in the application of Commonwealth, state and territory governments’ and non-government social support services for mitigating the impacts of stress and change such as drought on farm families and rural communities.
- Possible social support services for mitigating the impacts of stress and change such as drought on farm families and rural communities.
This assessment will not examine the appropriateness, effectiveness or efficiency of government drought business support and income support measures.
Nature of the assessment
Extensive public consultation, throughout rural Australia, will be a key aspect of the expert panel’s work. The panel will consult government and non-government agencies, including those with social and community responsibilities.
In undertaking this assessment, the panel will draw on existing research and may consult social researchers. The panel will have the capacity to engage analytical support as it sees fit. The Department of Agriculture, Fisheries and Forestry will provide secretariat services to the panel.
The panel will provide a final report to the Minister for Agriculture, Fisheries and Forestry in September 2008. The panel’s report will be released by the government.